The Standard Factory Overhead Rate Is $12 Per Machine Hour

question 127

Essay

The standard factory overhead rate is $12 per machine hour ($10 for variable factory overhead and $2 for fixed factory overhead)based on 100% capacity of 42,000 machine hours.The standard cost and the actual cost of factory overhead for the production of 2,000 units were as follows:

Determine the (a)volume variance, (b)controllable variance,and (c)total factory overhead cost variance.

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Definitions:

Conditioning Theory

A psychological theory that involves learning associations between behaviors and their consequences through reinforcement or punishment.

Training Process

A systematic approach to developing and delivering instructional materials and activities to meet learners' needs and objectives.

Formal Processes

Established, recognized procedures and methods followed within an organization to accomplish tasks or achieve objectives.

Informal Programs

Learning initiatives that occur outside of a formal educational or training structure, often characterized by self-directed or experiential learning approaches.